That’s the opinion of Lombard Street’s Freya Beamish, who wrote about the world’s second-largest economy in a report today. Export volume grew by as much as 4.5% during the fourth quarter from a quarter earlier, and while M2 growth–the amount of cash circulating in the economy– is lagging M3 growth–M2 plus longer-term deposits–a sign that individual Chinese citizens are looking for higher rates of return in the so-called shadow-banking system, Beamish says.

At the same time, Chinese authorities have been selling the yuan and buying dollars to prevent the currency from strengthening too much, a sign that it may be worried about the sustainability of its exports. It may also be boosting inflation, which hasn’t become a problem yet but well could be.

Unfortunately, such moves lead to what Beamish describes as “stop-start growth,” and delays the much needed transition to a more consumer-supported economy.

That should give pause to investors everywhere who think China’s rally has an extended lifespan. The iShares FTSE China 25 Index (FXI) exchange-traded fund has returned 18% during the past three months, while “hot” China stocks like Baidu (BIDU) have gained more than 20% during the past month in part because of better expectations for China’s economy.

About Emerging Markets Daily

Emerging markets have been synonymous with growth, but the outlook for individual nations is constantly changing. Countries from Brazil and Russia to Turkey face challenges including infrastructure bottlenecks, credit issues and political shifts. Barrons.com’s Emerging Markets Daily blog analyzes news, data and research out of emerging markets beyond Asia to help readers navigate the investment landscape.

Barron’s veteran Dimitra DeFotis has been blogging about emerging market investing since traveling to India and Turkey. Based in New York, she previously wrote for Barron’s about U.S. equity investing, including cover stories and roundtables on energy themes. Dimitra was among the first digital journalists at the Chicago Tribune and started her career as a police reporter at the Daily Herald in the Chicago suburbs. Dimitra holds degrees from the University of Illinois and Columbia University, where she was a Knight-Bagehot Fellow in the business and journalism schools. She studies multiple languages and photography.